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tv   Worldwide Exchange  CNBC  September 14, 2015 4:00am-5:01am EDT

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good morning and a very warm welcome to "worldwide exchange." i'm will fred frost. >> i'm susan li. these are your headlines from around the world. european equities hold on to small gains as chinese stocks hold on as production data disappoints. there are major fault lines in the global economy. international settlements saying that china is not an isolated issue. new survey expects the fed to hold rates this week as nobel lawyer yet says robert schiller
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says a hike won't cause a correction until u.s. stocks are back in the bubble. the u.n. calls for the halt for detention and ill treatments of migrants as germany imposes emergency border controls saying it can no longer cope with the influx of people. and welcome to "worldwide exchange." let's take a look at the chinese industrial figures we got over the weekend. this is the reason we saw a heavy selloff in the shinnin exchange. it grew by 6.1% in the month of august. it's raising concerns about the pace of the slowdown taking place in the world's second largest economy. the data field expectations says they could roll out further support measures. let's check in. we just had that dismal close just in china.
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>> yeah, susan, you and i know typically when you see this kind of data, let's face it, it was consistent with the chinese economy growing at sub7%, the market starts to think there will be more policy support. this time around the paradigm has changed. because of all the leverage in the system in the stock market in mainland china. the bad data is the capitalist for the deleveraging. that was the pattern and activity. we were up almost 3% at the settlement. it meant we were expecting the poor data to be offset by good noises from beijing. it was the data that the markets were zeroing, that was the excuse, as i said, catalyst for the leveraging volatility weakness in the broader market. in terms of the macro picture over here in asia, really one of a slowdown.
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the rest of the markets outside china, not a great deal of activity, not a great deal of momentum. it's down to the fed what they do this week will have enormous implications for emerging assets if they do move. even if they do calibrate future moves in terms of the proverbial loose tightening, the pace of tightening will be important. that will be a headlight reaction. stronger environment. watch out for indonesia and malaysia. gentleman thank you so much for that. weaker growth, they warn that the global markets have suffered repeated blows in the past couple of weeks mainly due to events in china. it adds that the strength of the dollar is also putting pressure on emerging economies.
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it's a close call but the latest monthly survey released by "the wall street journal" says most economists are expecting the federal reserve tomorrow keep the rates near zero as they count down to the two-day fmc meeting. it shows 46% of respondents are expecting a hike in september while 9.5% says it will come in october. more than 1/3 say the fed will keep rates where they are. we're also coming off the best week in wall street in close to six months. there is a greater fear the market might be overvalued than, say, at any other time since the dotcom bubble in 2000. robert schiller told the financial time that the confidence survey showed the u.s. stocks were back in a bubble. he would not comment on the massive correction but said the rate hike would not be the
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trigger for a selloff. as schiller says in the ft report, everyone knows it's coming. it's baked in already. it's not a big deal. it's interesting how schiller and his cake study which is the adjusted price multiple, his rationale that things are upper value where the bis says, no, the lower interest rates. >> absolutely. it's as you say, it's interesting that the hike itself in the markets. but i do think, this comes through in the bis report, they say it's unrealistic to think that the monetary policy can cure the global ills. given that we've had a six year market rally and given that growth is only about 2% rather than, say, 5%, which would justify the qe, i do think that either we do a bit of a correction again or we need to see growth pick up to justify
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the levels we've seen. it's one thing in europe and japan where you still have the policy supporting it, but if we're about to remove that, whether or not the hike is the start, but if that's ready to be removed, you need more growth to justify the action. >> i like the report because it kind of echos and says what a lot of people are seeing, that we're all addicted to the world of stimulus. even though the fed might be hiking interest rates, we're seeing more easing. so it's a bifurcated world, isn't it? >> absolutely. when we talk about the fed, do they focus just on domestic dated data or do they start thinking about chaes happening in china, what about what other central banks are doing. mario draghi and the data, can they afford to start hiking if
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they are furthering the loosening of that policy? what does that mean to the u.s. dollar? >> we'll get some statements from the doj. i agree with the tone of it, i think we're such a distorted world. when was the last time you saw the federal reserve hold off on hiking the interest rate in nine years and yet we're still thinking, maybe we should be holding off on hiking the interest rates. at what point do you get to the point where you have to move, right? >> of course, the big reason why people are wondering whether we hold off because -- >> we shouldn't be -- >> that was the cause of the deeper slowdown in europe. >> but everyone has their own, you know, situations, their own sovereignty as mark carney echoed. we still have sovereignty over our own, by the way, monetary policy. i don't think we should take everything as a whole. i think every country has their
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own issues and variables that we need to consider right now. to me, the u.s. we're full employment at 5.1%. how much longer can you put off on hiking the interest rate? >> it will be a very exciting fed meeting to watch this week. three more fed meetings this year, the september meeting is taking place this week. let's move on. tens of thousands of people took part in pro-migrant rallies on saturday in an international day of action. they gathered in stockholm, copenhagen and berlin. in london people held placards saying, refugees welcome here. germany's interior minister has announced the country is ready to reimpose the border controls in order to, quote, limit the current influx to germany as the refugee crisis shows no signs of lowering.
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>> they've urged europe to do more and called for a halt to the influx. let's head to brussels. >> reporter: good morning, susan. basically what we're expecting to hear is if they can find any common ground on the framework for an agreement. they need to redistribute 160,000 people and figure out where they're going to put them and process them. they need to figure outs moves forward on asylum and migrant policy. some heady issues taking place in brussels. we had a chance to hear over the weekend from poland's finance minister in an interview. take a listen. >> we do not agree on the compulsory borders but we do
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agree to help. we've talked about the progress in which the investment bank for europe which is going smoothly. but arguing that these matters are interrelated. the lack of investment crisis is actually mirror image of demographic crisis in europe and the migrant crisis, on the other hand, is a way to actually address this. so there is a room to actually invest in better integration of the migrants and refugees in europe and this should help to address the aging problem that most of the european union member states face. >> so poland's finance minister talking about the importance of
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investing in this issue in the future, talking about the possibility that the refugees, migrants will be a boon for the economy. that remains to be seen. that's something that the european lead jersz have to sell to their folks at home. we understand angela merkel was getting flak from the 16 different member states in germany. they say they weren't consulted. serious issues going forward. this all relates back to the issue of security itself and how they're going to keep these borders secure. guys. >> hali. thank you very much for that. let's put the focus back on the european markets. london is in the green. that's despite strong gains and disappointing asian gains as sri told you at the top. nonetheless, that hasn't weighed too much on the european market. we were up 3/4 of a percent. we just lost steam in the last 45 minutes or so.
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up .25%. let's look at the individual european markets. ftse 100 leading the charge over 1/2%. germany and france up and italy in the red. let's look at the big individual stories. rbs is taking on individual bankers. williams and glynn's spinoff with a public flotation with the telegraph. the ipo will rally the company at 1.5 billion pounds. it's up in london similar to the ftse. credit suisse is off. it is expected to sell its u.s. private banking according to a swiss newspaper yesterday. this is part of the strategic review launched in july when he took the helm. it's off .8%. abb is off a half a percent.
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the chairman said he's not interested in splitting the business. finally, shire is up .75%. last month its unsolicited proposal was rejected for being too low by its target. airbus is set to open its first jet liner production plant in the united states on monday and this is a move to help the french plane maker increase its market share and cut down costs. let's bring in stefan pedrossi. stefan, what do you think of this initiative? >> reporter: it's a significant investment for airbus. it has invested $600 billion to build this facility in alabama.
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airbus thinks it's going to be the most efficient factory in the world. it will produce mainly the airbus 321 which is the longer version of the most selling model 320. it will have the capacity to build up to eight aircraft per month although airbus is not planning to have the capacity. it will produce four aircraft per month. this is increasing production at a global level. it's buying some planes made by airbus because it will be the case made in america with its plans airbus plans to double its market share to 40% over the next few years. like boeing, airbus will gradually increase the production to cope with the rising demand. it's currently producing 42
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airbus 320 per month. plans to reach 50 units a month by the end of 2017 and it's going to adjust its target later this year with a higher target. >> stefan, thank you so much. now coming up on "worldwide exchange", uber gets stuck at a red like in jakarta. plus, high ceo pay is disgraceful says a man worth $4 billion. we'll be hearing more from donald trump. the donald as the election campaign continues. and has alibaba lost its touch? find out why beherents thinks it's lost more than half its val you u. value. red security. it's how you stay connected to each other
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we have political uncertainty once again in australia. tony abbott giving a press conference in the capitol of cambra. malcolm turnbull says he will challenge abbott. matt, people were expecting this given how hugely popular malcolm turnbull is. this as we head into national
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election 2016, international viewer it seems to throw a lot of upheaval again and questions in investing in australia when there seems to be no stable government. >> exactly right, susan. so you just probably caught the tail end of those comments then from the australian prime minister, tony abbott, saying there will be a ballot for the leadership later on this evening and that he will be a candidate and that he expects to win. everything we've been hearing this afternoon, it's been just over two hours since we did first get first news that malcolm turnbull would be challenging the prime minister, tony abbott. the numbers certainly look as though they're going in the direction of malcolm turnbull, but tony abbott just saying there that australia needs a strong and stable government avoiding labor's revolving door of prime ministers as we saw
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under the rod government. he says that his government has laid the foundations for good government. you can trust him to deliver a stronger economy and safer community. the last on this is we will be getting a leadership ballot on this later this evening. no time then with respect to what time that ballot is going to be taking place, but we'll certainly stay across all of that for you. let's recap on what happened earlier on. we do understand that julie bishop, the deputy leader of the lip ral party spoke to the prime minister earlier today urging him to step down. that was then followed by a conversation with malcolm turnbull who said that he would be challenging the prime minister. particular a listen to some of what malcolm turnbull told the media earlier. >> it's clear enough that the government is not successful in providing the economic
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leadership we need. it is not the fault of individual ministers. the prime minister has not been capable of providing the economic leadership our country needs. he has not been capable of providing the economic confidence that business needs. >> malcolm turnbull, the former communications minister speaking there. he has tendered his position from cabinet and from communications minister. susan and will fred, that's the latest from australia. looks as though we could be in for another new australian prime minister. malcolm turnbull saying he's going to challenge tony abbott. there will be a party room vote later this evening. no time as of yet when that will take place. we'll stick around to bring you those developments. >> the excitement of australian
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politics. matt in sydney. let's check in on the markets. this week will be the fed, the fed, the fed. are they going to hike interest rates on the october 16th and 17th meeting? if you check in on fixed earning, the answer is no. we have stickiness with the 10-year economy. they don't expect any movement from the fomc. let's check in on the german buniels. let's flip the page and check in on commodities. we did come off a week where crude pricing broke a two-week winning streak ending down. we're still lower in the early monday session. crude losing 1.25. gold with losses. 1107 an ounce. let's check in on fixed income
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and what's happening with the u.s. dollar. the dollar turning in the first negative weak. the euro up to 113 levels. not much movement across the japanese yen. we're expecting the bank of japan's gov nor to give them more hints on whether they'll expand their qqe program and that's buying a whole lot of bonds right now and flooding the economy with a lot of catch. will? >> susan, thank you for that. bank of england policy maker, martin wheel, says the rates need to be alongside the rates. the bank of japan unlikely to expand monetary policy this week, this according to a reuters policy. this coming despite a raft of poor data. this is showing that the bank's
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2% target will prove even more elusive. the field of presidential candidates racing for the white house is on, but what if, say, one more name was thrown into the ring? well, in an e-mail exchange with cnbc's own eamon jab verse, mark cuban revealing how he'd structure his own campaign and what it would mean for the u.s. to have a three comma president in the united states. it's a fun idea to toss around, running for president. he said he would likely beat hillary if he ran as a democrat. if he ever went up against the donald, donald trump, he would crush him. no doubt about it. >> fighting talk from mr. cuban as usual. >> lots of confidence. i would like to see that, donald trump going up against kind of himself. >> i'm not sure either of them
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would like to be compared quite so close. it would be quite a story. a joke and disgrace. this is how donald trump described him. he's amassing a multi-million fortune from running a real estate business. people are saying isn't that a bit hypocritical from the donald? >> i think it's certainly rich. >> good words. well chosen. >> i do think it does bring in a different debate though which is earning money via income, annual income that's paid out to you by a big company to a ceo versus building capital and equity in a business over the long term. i think both u.k. and the u.s., definitely the techs building up more capitol than annual income. it's just their income as
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opposed to the other side of the debate. i'm not quite sure what trump's point is here. >> that's his caveat. he can say, i'm not paid the salary, my money comes from dividends. it doesn't count as income. >> that's why he's trying to make his point. i'm sure many people with far, far less with capitol don't buy it. do you think that donald trump's quote that ceo pay is disgraceful is accurate or not or is it a little bit hip critical for him. e-mail us or via twitte twitter @cnbcwest. get in touch with us on that. speaking of a man that makes a lot of money, a lot of money, he made $300 million in one fight with manny pacquiao, we're talking about floyd money
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mayweather. he cemented his place with his final fight. the boxing bohemuth kept his perfect record. he says there's nothing left to prove for him. >> there was also a fight in london this weekend. anthony josh ended in the first round. >> he didn't make $700 million. >> he didn't make as much. he's younger. a good prospect for the britts. we're going to go to break. stay with us on "worldwide exchange." hey! hi! our cloud - it's a platform based on awesome-ization! really? can it keep our data where it needs to be no matter what country we're in? integrate with our systems to help keep transactions secure? combine customer data with likes, tweets, the weather,
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european he cequities hold o gains. there are major fault lines in the global economy. a bank of international settlements saying that china is not an isolated issue. a new survey expects the fed to hold rates this week as nobel laureate robert schiller says a hike won't cause a correction despite his view that u.s. stocks are back in bubble territory. the u.n. calls for a halt to the detention and ill treatment of migrants as germany imposes
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emergency border controls saying it can no longer cope with the influx of people. let's check in on the european session. we're coming off a selloff that took place on the chinese markets. it's down 7% at the end of it but we are coming off a pretty good week for u.s. equities shortened trading week last week. the best we've seen in six months. looking across the board, looking at minimal gains up half a percent on the ftse, the dax seen gains of 1/3 and the cac up by similar levels. the euro stock 50 right now. it's what we're seeing across the region.
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>> perhaps that tick up means some people expect a rate hike although the markets showed otherwise. we can see the euro is just about flat and the yen 120.7. fedticipation. that's the theme grabbing investors. gold is trading near a one month low. joining us is the ceo of hannah and partners. why don't we kick off with gold. >> i think the events of the summer and the year are testing
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the pash ebs tience of the peop there. a little uncertainty is what we needed to get the gold price going. we've seen more uncertainty in many people's eyes than any of those could ever have hoped for. yet we've got relatively low gold at the moment. >> this word, fed ticipation, did we just make it up? >> if we did, it will be in frequent use soon enough. >> what's the call, are they going to hold off? >> there are a lot of people out there with a better informed view than i. i think as far as the gold market is concerned, it creates a little bit of weakness for a few more months. likewise, there are pressures on the other side of gold. i think it's hard not to remain
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bullish. lots of weakness over the summer. how much has that got to do with expectations of a u.s. rate hike or is it other factors? >> gold is strongly more affected by rates than any other commodity. because people do own it as a currency. it's a non-yield bearing investment so the interest one can earn off of the reserve currency is critically important. i think for the bulk of the rest of the commodity world, it's much more about the demand side of the equation. that's looking weak in a lot of areas for a most of well-understood reasons. >> conversely, we're talking about the depressed gold pricing. we're hearing from robert schiller saying he thinks or his investor surveys were telling him stocks, equities are over valued. do you feel that way?
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a commodity class like gold hasn't seen the gains it should have? >> look, there's no doubt we have been in an equity bull market for quite a few years now, seven or eight years. >> is it over valued? i was trying to gauge what exactly that means? >> look, i think very hard to tell. i don't think the market yet wears the characteristics of over valuation of what are in many people's eyes seeing the weeks or months preceding a crash. my personal view of gold which kind of ties back to that is there's some local pressures looked at on a six month to three jeer view. >> let's look at this.
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it's too affected by the general risk off sentiment. >> i think one of the commodities we find interesting is forsythe. it has pressure at the high end. conversely the under investment and what people look at as a very unexciting commodity for years, the associated dynamic with turning rock into this kind of shiny metal at spectacular levels of power consumption, i think that's thrown up a few interesting inefficiencies at various points of the value chain. >> how does currencies fit into the equation? because i think we saw the dollar index falling for the first time in three weeks because people aren't putting off when the fed might be poking rates. how does that play into the commodities future?
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>> look, gold is presenting weakness. i think the flip side of that as china tries to think about fixing its currency, fixing its currency relative to gold. we see the first new currency trend lines of china trying to establish a true reserve currency in a global sense. i think there's a lot to play through on what is probably the other dominant commodity affecting currency. >> yeah. because i think people forget about that, right? that rare intervention that we saw last week off shore. good to see you today, neil. thanks for dropping by. ceo of hammam and partners. >> speaking of currencies, the american green back has been called into question after the dollar index did post its first negative week in three shedding 1% or so across the five days. let's talk about fx.
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live from rbc in london. adam, wish we could see you in person here in the studio. we'll take it. what about the decline in u.s. dollars. a surprise since we have an fmoc meet? >> no. it's down 20%. that was 100% back at the beginning of the year. i guess as we continue to price that risk out into thursday's announcement my bias would be the global sale is off. >> we did see a hike this week, you'd see a big bounce back in the u.s. dollar on that day? >> i think you would, yes, but i think the market has more to digest on thursday than just the rate decision itself. of course, whether or not they raise rates at this meeting, what they say about the prospects for rates going forward is equally important.
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no rate hike this week and a near rate hike in october is a double positive. there's more to digest than the bien nar ri rate hike this week. >> adam, as you suggest, the yen and the euro are surprisingly strong. the u.s. dollar against the yen currencies has certainly been strong itself over the last few weeks and months. has that gone too far? are there any currencies that stand out as being buying opportunities right now? >> i think selectively maybe yes. as a group the danger is that we stay in this relatively risk adverse environment which is where the risks come from. i think looking further down the road once we have a clearer idea where fed policy is going then -- which in our view is a
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very gentle, very slow trajectory for rates going higher, then maybe you start to look for selective value. i think all of the uncertainty at the moment, i think we're concerned that markets stay quite risk adverse. that has broader implications for the yen. >> adam, thank you so much. let's check in on shares of japanese technology from toshiba which declined during the regular session following the release of its first quarter results. now the earnings report had been delayed and delayed after a big accounting scandal. let's bring in mikkika. people have been waiting and they expected some sort of balance sheet read. what did you make of the results? >> yes. well, it's definitely more bad news for japan's scandal clad giant. they announced their first
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quarter earnings and it has a net loss of $100 million. it was the first for the firm to fall into the red during the first quarter. it had seen $140 million profit last year. sales at 4 and 5% in the previous year due to narrowing down sales areas for its televisions and pcs. profitability in its core businesses such as consumer electronics and car generation worsened significantly. the company has been embroiled in an accounting scandal. stacking up the numbers in appalling areas has brought business to light. the firm is scheduled to hold a shareholder's meeting later this month and appoint an outside bored member in hopes to rebuild the firm's reputation. they're likely to penalize toshiba. the tokyo stock exchange has put
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toshiba on the watch list as of tuesday and charged a penalty of $750,000. and that's all from the nikkei. back to you. >> thank you so much. we're going to go to break here on "worldwide exchange." still to come on the program, cnbc is putting the sharing economy in the spotlights. we spoke to the engine for transportation as a car sharing service zip car joins us next.
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ride sharing time. uber has been denied that any of its drivers have been arrested in jakarta. a company spokesperson said that no drivers have been arrested in the past or today and that jakarta police provided incorrect information. they said 30 drivers were arrested as the company was operating illegally. it's not just taxi services that's part of the sharing economy and that's helping to revolutionize global business. lyft sharing is popular as well. we have this report from tokyo. >> narrow roads, no parking and expensive.
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it's no wonder why fewer people are buying cars in tokyo. they now have more than half a million members. >> translator: shopping, picking up the kids during business trips, if you need a car for just two to three hours, sharing is easier than renting. >> the company is taking the idea one step further with this tiny electric car/bike. toyota's iroad is not on sale yet, but for just 412 yen for a 15 minute ride, it turns tokyo into an amusement park. at just 2.3 meters long, 87 centimeters wide, i thought i would feel tiny, but instead the road feels huge. top speed is 60 keilos but no oe travels that fast in tokyo. steering is done with the wheels in the back. tech wise the beauty is that it
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leans as you turn a corner, not with your own weight as you would on a bike but automatically. >> translator: it's small so there's less stress on the environment. technology is finding solutions. it's fun and convenient. >> it's fun, but i'm wondering if it's really any more convenient than taking the subway, which is super efficient here, but there's definitely a feel good factor in thoeg you can pack up and go. isn't that what being mobile means? >> a bit of a reverse tricycle, isn't it? let's talk about transportation in the sharing economy. we have mark walker, general manager of zip guacar in london
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u.k. save money, efficiency, get around. how much is business growing these days? >> the car sharing business is growing fast. the latest research published by a research house had logged that there were 1 million car sharers around the world in 2013. they're now projecting that will be over 12 million by 2020. so that's the kind of market growth that's going on just now. >> what kind of journeys do people use your service for? is this just around london or driving up to scotland to visit relatives? >> it's incredibly varied. we're catering to tens and tens of thousands of people. it might be they're doing their monthly shop, it might be that they're picking up furniture from a well known swedish furniture furniture store or it's visiting family and friends all around the country. all of those are taking place every day of the week.
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>> this is actually more inconvenient than owning your own car. it's not actually on your doorstep. thus, if it's only a short trip there are easier means of travel. >> well, i think that when i first moved to london 30 years ago i came by car, a car that i owned at the time and i was in that mind set that i needed a car sat outside just in case to get my errands run and so on. increasingly people don't feel that way at all. in fact, they're very happy to use public transport that's improved tremendously, very happy to cycle. they only want to use a car when they need to. they're much more discerning. >> rates start at 5 pounds an hour. it takes care of roadside assistance, insurance, all of that other stuff. you've seen the numbers that uber -- people think uber are putting in. ride after ride after ride. why would i want to use a zip
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car over something like lyft, uber, swift car? >> so what you are o members tell us is they look for different answers to different kinds of travel problems that they might face at any given time. sometimes jumping into uber is what you do particularly if you come out of a club at 2:00 in the morning. that's perfect. there are other times when you want to drive yourself. you might be running a number of errands, you might be transporting family members around, you might be traveling up to manchester, whatever it is, there are many different trip types and there are different solutions to each of those trip types of which zip car is one. >> i might quickly sum up your growth plan. what stage are you at in the u.k. and how big do you think you can be? elsewhere what are the biggest markets? >> even going backwards. zip car's been in business now for 15 years and is now -- we have over 900,000 members in 470 cities, 440 campuses across north america. but also we've expanded in
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europe recently as well as london and other u.k. cities then we're also in paris, madrid, bars sell lone na, istanbul. rapid growth. >> quickly because we're running out of time. why do you have zip car emblazoned on all the vehicles that you rent out? does it have to have zip car? >> zip car -- >> i haven't driven one. >> many members drive those cars with the name on side with pride. not everybody wants to drive a car that has branding on the side, but the fact is is that we're still quite a well-kept secret among lots of people. not everybody knows about car sharing or about zip car. it's one way to create visibility and create more awareness. >> thanks so much for joining us. mark walker, general manager at zip car u.k. so with a sky high estimated
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valuation for uber, is it really worth the hype? well, you want to head to for all the details plus you'll find a special home page that we've made with all of this week's stories on the sharing economy. speaking of sky high valuation, alibaba has hit back on beherents. they've published a letter on its website addressing what it says are inconsistencies in the magazine's analysis. alibaba's stock having dipped after having soared 75% in the first eight weeks of trading. we're looking at $64, 63. pretty close to the ipo. i was looking at this berehnts report. what is a real p.e. ratio? they cite the history of the b2b alley baba site.
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hong kong and then we saw the stock price dwindle. addressing the fake goods as well. i think there are a lot of questions in there. for me for a u.s.-listed china stock, the biggest factor for a stock price in the last six months has been china works. it's an easy reduced exposure to china trade for people. i have no doubt that's played a part in the reason we've gone up with that. not ideal with what's happened in china since then. >> alibaba responding to this behrens story. they're not shying away. the reporter says he shows a lack of understanding of ecommerce, period. factual errors. how you can't compare us to ebay because ebay doesn't have a competitive china business. you can't just young us by
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halving the ecommerce market in china. there are a lot of, shall we say, factual semantics involved in this retort. >> it's a good argument which no doubt will continue. let's move on and talk now about u.k. politics. in a lurch to the left, the labor party has elected a new leader with 60% of the vote. his economic policies include the renational lieization of the power and high taxes on the rich. they say markets should not ignore the win. corbin's voice will be influential. australia's prime minister is facing a leadership challenge from the former communications minister malcolm turnbull. the prime minister tony abbott was stressing the need for
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stability. he says at the head of the australian government. >> i have been most heartened by the messages of support flooding into the offices saying most emphatically, we are not the labor party. this country needs strong and stable government and that means avoiding at all costs labor's revolving door prime ministership. >> well, with this australian political upheaval it's looking like american politics. >> it's crazy the internal debates they have. >> always. >> no election coming up. no threat that the government party's going to be asked. it's just internal. >> that happened last time, julian gill lard, kevin rudd. it's back and forth. some people are saying it's like the entertainment, the cycle we're seeing in u.s. politics. speaking of u.s. politics interesting this weekend calling it a joke and a disgrace.
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that's how republican leadership candidate, the entertainer himself, donald trump described current ceo pay levels. he's worth $4 billion amassing a multi-billion dollar fortune from running a real estate business. >> so do you agree with donald trump that ceo pay is, quote, disgraceful or is the man worth an estimated $4 billion courting hypocri hypocrisy. e-mail us at worldwide cnbc com or on twitter. the number of confirmed dead has risen to 107 following a crane collapse in mecca, saudi arabia. officials say hi winds caused the crane's collapse although others are placing the blame on unsafe building practices. it's confirmed that they will go ahead in spite of the tragic accident at the site. kurdish militants killed three police officers on sunday.
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the attacks came after authorities imposed a curfew on the region's largest city. clashes have intensified as they call for a fresh round in september. we're using the b word once again, yes, bubble nobel economist robert schiller saying stocks might be in a bubble. is this a signal to sell or should you ride the winning wave? we'll discuss after this. r famis often need a helping hand. after brushing, listerine® total care helps prevent cavities, strengthens teeth and restores tooth enamel.
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good monday morning. welcome to "worldwide exchange." i'm susan li. >> i'm will fred frost. here are your headlines from around the world. u.s. futures point higher as nobel laureate robert schiller says a fed rate hike won't cause a correction despite his view that u.s. stocks are back in a bubble. chinese stocks close deep in the red as industrial production data disappoints sending the schenn jen down over 6%. >> alibaba lashes out at bare


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